Enable FEI as Collateral on Aave V2
01Summary
Enable FEI as a collateral asset on Aave V2 with conservative risk parameters (50% LTV, 60% liquidation threshold, 6.5% liquidation bonus) based on Gauntlet's risk analysis, with potential for parameter increases if market conditions remain safe.
- Type
- protocol addition
Key changes
- Enable FEI token as collateral on Aave V2 with LTV of 50%(high)
- Set liquidation threshold at 60% for FEI collateral(high)
- Set liquidation bonus at 6.5% for FEI collateral(medium)
- Cap liquidatable collateral to FEI's average daily trading volume initially(medium)
Notable concerns
- FEI is less liquid than most other stablecoins currently used as collateral on Aave
- Initial conservative parameters with liquidatable collateral capped to average daily trading volume to manage risk
Generated by Kvorum
02Description
Simple Summary
A proposal to enable FEI as a collateral asset on Aave V2.
Abstract
This proposal is a continuation of Gauntlet's Dynamic Risk Parameters engagement which includes enabling assets as collateral on Aave V2.
Specification
Gauntlet's simulation analysis shows that it is safe to enable FEI as a collateral asset on Aave V2 with the below risk parameters. The initial parameters for FEI will be an LTV of 50%, a Liquidation Threshold of 60%, and a Liquidation Bonus of 6.5%. Most of the stablecoins that can be used as collateral on Aave are more liquid, and our platform’s analysis conservatively recommends initially capping the amount of collateral that can be liquidatable to the average daily trading volume of FEI. If user behavior and market conditions over the coming months continue to show safe conditions for increasing capital efficiency on FEI, we shall recommend ramping up the LTV and Liquidation Threshold incrementally.
Implementation
The proposal sets the liquidation bonus, LTV and liquidation threshold ratios by calling configureReserveAsCollateral on the LendingPoolConfigurator contract at 0x311Bb771e4F8952E6Da169b425E7e92d6Ac45756, using the address and parameters specific to each token.
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal describes a single action: enabling FEI as collateral on Aave V2 via configureReserveAsCollateral on the LendingPoolConfigurator contract, with LTV 50%, Liquidation Threshold 60%, and Liquidation Bonus 6.5%. The decoded calldata shows exactly one call to configureReserveAsCollateral on the same contract address (case-insensitive match), targeting the FEI token address, with parameters 5000 (50% LTV), 6000 (60% liquidation threshold), and 10650 (106.5%, which under Aave's convention represents a 6.5% liquidation bonus above par). All values convert cleanly to match the prose's percentages, and the target contract and action count align perfectly with the description. No omitted, extra, or mismatched actions were found.
Generated by Kvorum
04Actions
- Target
- 0x311b…5756
- Value
- 0 wei
- Function
- configureReserveAsCollateral(address,uint256,uint256,uint256)
- Arguments
{ "0": "0xF629cBd94d3791C9250152BD8dfBDF380E2a3B9c", "1": "5000", "2": "6000", "3": "10650" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| DD0xdd70…8202 | For | 134.1K | 30.36% | — | 5y ago |
| F60xf63e…78c8 | For | 104.8K | 23.74% | — | 5y ago |
| C10xc17c…64e1 | For | 103.3K | 23.39% | — | 5y ago |
| AF0xafda…3a6e | For | 93.4K | 21.15% | — | 5y ago |
| 680x683a…6c02 | For | 6K | 1.36% | — | 5y ago |
07Forum
No forum thread is confidently linked to this proposal.
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